The Fed's Decision to Keep Rates Steady Is 'Unsurprising,' According to a JPMorgan Expert. Here's Why. Federal Reserve Chair Jerome Powell said that the Fed wasn't in any rush to make rate adjustments.

By Sherin Shibu Edited by Melissa Malamut

Key Takeaways

  • Federal policymakers kept interest rates steady on Wednesday.
  • Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, said the decision was as expected.

Federal Reserve officials kept interest rates at a target range of 4.25% to 4.5% following the conclusion of the Federal Open Market Committee (FOMC) meeting on Wednesday.

The range has stayed the same since December when the Fed cut rates by 25 basis points or 0.25%, but the Fed indicated that reductions to the rate could occur later in the year.

"We'll be adapting as we go," Federal Reserve chair Jerome Powell said in a Wednesday press conference following the decision. He noted that the Fed does not need to rush to make policy adjustments and "is well positioned to wait for clarity" on President Donald Trump's economic plans, including tariffs.

"Everybody is forecasting some inflation effect from tariffs," Powell stated at the press conference. "We're going to have to wait and see all of that."

The move to hold rates steady was expected. Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, told Entrepreneur in an emailed statement that the lack of change to the rate was "unsurprising."

"I continue to admire the Fed's patience as we all await further clarity on the feed-through effects of trade policy right now, but I think investors will be craving clearer direction out of the FOMC meetings ahead," Ausenbaugh stated.

Related: 3 Predictions for the U.S. Economy in 2025, According to a Chief Economist

Meanwhile, Melissa Cohn, regional vice president of William Raveis Mortgage and a 43-year mortgage industry veteran, told Entrepreneur in a separate emailed statement that if tariffs and higher inflation occurred, future rate cuts would be unlikely.

"What happens in the economy in the next three months will be the driver of future rate movement from the Fed," she stated.

Federal Reserve chair Jerome Powell. Photo by Kevin Dietsch/Getty Images

Fed policymakers on Wednesday also predicted higher unemployment and less economic growth this year than they did in December. According to Fox Business, policymakers projected that real gross domestic product (GDP) would grow by 1.7% by the end of the year, down from a 2.1% prediction in December. They also forecasted an unemployment rate of 4.4% in December, up from a previous prediction of 4.3%.

The unemployment rate was 4.1% and inflation was at 2.8% in February, per the latest federal data. The Fed's goal is to maintain low prices and drive full employment.

The Fed also held rates steady in January, following three preceding cuts in September, November, and December.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Here's How Much a Typical Google Employee Makes in a Year

Compensation for the median Google employee was up 5% in 2024 compared to 2023, according to a new U.S. Securities and Exchange Commission filing.

Business News

Jeff Bezos Launches a Tesla-Rival That's 'Affordable' and Customizable. Here's What the EV Truck Looks Like.

Slate Auto has launched its reservation site, where truck buyers can create a vehicle with a spate of customizations.

Leadership

What Makes You a Unicorn in Your Industry? Start by Mastering These 4 Pillars

We all want to achieve elusive unicorn status. But how do you attain such a lofty goal among stiff competition, all vying for the same thing?

Leadership

This Overlooked Leadership Skill Will Help You Build Trust, Influence Teams and Thrive Under Pressure. Here's How to Develop It.

Executive presence is a critical but underrated leadership skill in 2025. Here are the steps you can take to develop it.